J-NET Trading

Contract Specifications - Outline

What is J-NET Derivatives Trading?

J-NET Derivatives Trading refers to non-auction futures and options trading in the J-NET market which is independent of the auction market.

Applicable issues

Available for all issues listed below:

  • Nikkei 225 Futures
  • Nikkei 225 mini
  • TOPIX Futures
  • mini-TOPIX Futures
  • JPX-Nikkei 400 Futures
  • TSE Mothers Index Futures
  • TOPIX Core30 Futures
  • RN Prime Index Futures
  • TOPIX Banks Index Futures
  • DJIA Futures
  • India Nifty50 Futures
  • FTSE China 50 Index Futures
  • Nikkei Stock Average Dividend Point Index (Nikkei 225 Dividend Index)
  • TOPIX Dividend Index
  • TOPIX Core30 Dividend Index
  • Nikkei 225 VI Futures
  • TSE REIT Index Futures
  • 5-year JGB Futures
  • 10-year JGB Futures
  • mini 10-year JGB Futures
  • 20-year JGB Futures
  • Nikkei 225 Options
  • TOPIX Options
  • JPX-Nikkei 400 Options
  • Options on JGB Futures
  • Securities Options
(note)
  • ・TAIEX Futures is not available in J-NET Trading.

Trading Hours

Index Futures (except for Nikkei 225 VI Futrues) and Index Options

8:20~16:00
16:15~5:30 (following day)

Nikkei 225 VI Futrues

8:20~16:00
16:15~19:00

JGB Futures and Options

8:20~15:15
15:25~5:30 (following day)

Securities Options

8:20~16:00

Quotation J-NET Trading is conducted at integral multiples of the following price unit:

Product Price Unit
All products except for Securities Options \0.0001 or 0.0001 point
Securities Options \0.1 (\1.0 for certain issues)

Price Limits

Within the range of the upper limit and lower limit calculated by the following formula. (In case an order exceeds the daily price limit of the day, the order shall be executed at a price which is within the "Price Limit" calculated by the following formula.)

Product Price Limit Range
Nikkei 225 VI Futures The DCB reference price +/- 20% of the base price
for the daily price limits of the issue
Nikkei Stock Average Dividend Point Index The DCB reference price +/- 10% of the base price
for the daily price limits of the issue
TOPIX Dividend Index
TOPIX Core30 Dividend Index
Nikkei 225 Futures The DCB reference price +/- 8% of the base price
for the daily price limits of the issue
Nikkei 225 mini
TOPIX Futures
mini-TOPIX Futures
JPX-Nikkei 400 Futures
TSE Mothers Index Futures
TOPIX Core30 Futures
TOPIX Banks Index Futures
TSE REIT Index Futures
RN Prime Index Futures
DJIA Futures
India Nifty50 Futures
FTSE China 50 Index Futures
5-year JGB Futures The DCB reference price +/- 0.5% of the base price
for the daily price limits of the issue
10-year JGB Futures
mini 10-year JGB Futures
20-year JGB Futures
Nikkei 225 Options Reference Price +/- (Closing price of the underlying index on the previous trading day × 11% (*1) + | Last contract price of the underlying index (*2) - Closing price of the underlying index on previous trading day | )
TOPIX Options
JPX-Nikkei 400 Options
Options on JGB Futures The DCB reference price +/- 0.5 of the base price for the daily price limits
of the underlying futures contract month
Securities Options Reference Price +/- (Reference price of price range for underlying security on the day × 8% + | Last contract price of the underlying security - Base price of the underlying security on the same day | )

For details of DCB reference price, please refer to Immediately Executable Price Range Rule

  • 8% for nearest 3 contract months and Weekly Options.
  • Calculated back from the futures price of the same underlying.

Minimum Trading Unit

1 unit.

Mark-to-the-market / Open Interest / Settlement / Margin / Trading Fees

OSE treats each issue as a sale and purchase. (i.e. each of the above items is treated the same as that of the auction market.)

Circulation and Announcement of Trading Volume and Contract Price to Transaction Participants and the Public

After the end of trading session, related data shall be distributed to the media. For J-NET Trading, 4 price information (open, high, low & close), total trading volume will be published.
On the next day, the same data will be published on the JPX web site [Osaka Exchange Daily Official List].

J-NET Combo Trades

A J-NET combo trade is a function, with which trading in several issues (up to 6 issues) can be executed at the same time. A J-NET combo trade is executed only when the transactions in all the issues meet the conditions of execution. When trading with a particular strategy is attempted with J-NET Trading, a combo trade can avoid the legging risk that part of issues for strategy would not be executed. It is necessary for the constituent issues of a combo trade to belong to the same group prescribed by OSE.

How to Use

Since non-auction trading for cash and futures / options contracts can be made simultaneously, the following types of strategies and transactions are available.

  • EFP (Exchange for Physical) Trading ("Exchange" of baskets of cash and futures contracts.)
  • Strategies for large block trades of options (strangle, calendar spread, etc.)
  • Strategies by combining large block trades of futures and options (a strategy for hedging futures by options, arbitrage trades using futures and options, etc.)

In addition to the above strategies and usage, investors are able to form various strategies because cash and derivative positions can be established or adjusted simultaneously, while avoiding market impact.